The parties entered into a contract for building works at a mill. The contract incorporated the JCT 1980 edition, Private without Quantities incorporating amendments 1 to 18. Disputes arose. An administrative order was made against Bradlor and the administrator commenced adjudication for payment of interim certificates. Straume raised the defence of set-off but also applied to the Court for leave to commence its own adjudications.

The Judge held that leave under Section 11(3) of the Insolvency Act was required as the adjudication procedure were quasi legal proceedings and “other proceedings” within Section 11(3). However, leave was refused. If there was a valid set-off it could be determined in the adjudication commenced by the Administrator and it was unnecessary for two adjudications to raise the same point. Straume was trying, by a side door, to get round the fact that it had contractually excluded a set off. As he had contractually excluded a set off, Straume should not be entitled to it by a side door.